Recorded decline in joblessness levels
Portugal Sees Lowest Unemployment Rate in Nearly Two Years
The unemployment rate in Portugal has reached a significant milestone, dropping to 6.0% in June 2025, marking a decrease of approximately 0.3 percentage points from June 2024. This is the lowest unemployment figure since July 2023, according to recent data.
By the end of June, the total number of employment requests across mainland Portugal and the autonomous regions reached 443,860. This is a notable increase from the previous year, indicating a growing demand for jobs.
The Institute for Employment and Vocational Training (IEFP) reported that there were 11,458 fewer unemployed people in June 2025 compared to June 2024. This decrease was mainly driven by people registered for less than 12 months, those seeking new employment, and job seekers over 25 years old.
The active population reached its highest level since 1998 in April 2025, showing more people engaged in the labor market. This increased labor market activity is another contributing factor to the decreasing unemployment rate.
Portugal’s economy has been expanding since around 2014, which has consistently driven down unemployment. In 2024-2025, ongoing economic growth supported job creation. Structural factors, such as demographic dynamics, job recovery in tourism and agriculture, and vocational training, have also played a role in the decline in unemployment over the past decade.
The IEFP report indicated that registered job seekers represented 66.1% of all employment requests. Individuals seeking new employment decreased by 9,916 in June, and the number of people registered for less than 12 months decreased by 11,812. These figures suggest that the unemployment rate may continue to decrease further.
It's worth noting that in July 2023, 284,330 people were registered as unemployed. While this figure is still higher than the figure in June 2024, it represents the lowest unemployment figure in nearly two years. June marks the fifth consecutive monthly decrease in unemployment, continuing a downward trend that began in February 2025.
In conclusion, the unemployment rate in Portugal in June 2024 was approximately 6.3%, decreasing to 6.0% by June 2025 due to sustained economic growth, improved employment dynamics, and effective labor market policies and conditions. This positive trend is a promising sign for the Portuguese economy and its workforce.
As a result of the robust economic growth in Portugal, particularly in the past decade, there has been a surge in finance-related activities. In the first half of 2025, the Portuguese government received an unprecedented number of investment proposals, a significant portion of which were in the finance sector. Given the low unemployment rate in Portugal, there is a skilled workforce readily available to fill these finance-related positions, contributing to the continued expansion of the economy.
